NVR's Q4 revenue, profit fall on higher lot costs and pricing pressure

Overview

• Homebuilder's Q4 revenue decreased 5% yr/yr, with net income down 20%

• Average sales price of new orders in Q4 2025 decreased by 3%

• Mortgage banking income for Q4 rose 24% due to increased secondary marketing gains

Result Drivers

• HIGHER LOT COSTS - Gross profit margin decreased due to higher lot costs and pricing pressure

• NEW ORDERS INCREASE - New orders in Q4 2025 increased by 3% to 4,951 units

• MORTGAGE BANKING GAINS - Mortgage banking income rose 24% due to increased secondary marketing gains

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the homebuilding peer group is "buy."

• Wall Street's median 12-month price target for NVR Inc is $8,275.00, about 10.3% above its January 27 closing price of $7,499.76

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nPn4C6WBza

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